California Form Ftb 626 – Fill Out and Use This PDF

California Form Ftb 626 PDF Details

The California FTB 626 form is the official request form used to ask the Franchise Tax Board's Chief Counsel to waive or reduce specific tax penalties. Taxpayers file this form when they believe a penalty imposed under the California Revenue and Taxation Code should be reconsidered based on the facts and circumstances of their situation.

What Penalties the FTB 626 Covers

The FTB 626 form addresses several categories of penalty relief. Each category below requires a separate request form:

• Noneconomic Substance Transaction penalty - imposed when a tax shelter transaction lacks economic substance
• Reportable transaction understatement penalty - applies to income understatements connected to reportable tax shelter transactions
• Failure to disclose penalty - assessed when a taxpayer does not report a listed or reportable transaction on their California income tax return
• Failure to maintain advisee list penalty - applies to material advisors who do not keep required records of tax shelter participants
• Frivolous return or submission penalty - imposed when the FTB determines a return or submission is frivolous
• Failure to furnish information penalty - applies to taxpayers or advisors who do not provide required information to the FTB

Who Should File the FTB 626 Form

Individuals, corporations, partnerships, and other entities may file the California FTB 626 form if they have received a notice of penalty assessment from the Franchise Tax Board and wish to formally request that the Chief Counsel review and relieve the penalty. Both California residents and non-residents who file California income tax returns may use this form when the appropriate penalty type is involved.

Information Required to Complete the Form

To fill out the FTB 626 accurately, you will need the following information:

• Taxpayer name as it appears on the California income tax return
• Taxpayer identification number - Social Security Number or California Corporation Number
• Mailing address and contact information
• Tax year for which the penalty was assessed
• Penalty type - select the appropriate section of the form
• Statement of facts and reasons explaining why the penalty should be relieved

The completed FTB 626 form must be signed under penalty of perjury, confirming that all information is accurate and complete.

Step-by-Step Instructions for Filling Out FTB 626

Follow these steps to complete the California FTB 626 form correctly:

1. Identify the correct penalty section - Review the penalty notice you received and match it to the appropriate section on the FTB 626. Each section corresponds to a specific penalty type.
2. Enter taxpayer information - Fill in your name, identification number, address, and the tax year for which you are requesting relief.
3. Write your statement of facts - Prepare a clear, detailed explanation of why the penalty should be relieved. Include relevant dates, events, and supporting documentation references.
4. Attach supporting documents - Include any records, correspondence, or evidence that supports your request for penalty relief.
5. Sign and date the form - The declaration at the bottom must be signed under penalty of perjury. If a representative is signing, attach a power of attorney.
6. Submit the completed form - Mail or deliver the FTB 626 to the address indicated in your penalty notice or on the FTB website.

Important Notes for Your Penalty Relief Request

Before submitting the FTB 626, keep these points in mind:

• A separate form is required for each type of penalty you are requesting relief from
• The statement of facts is critical - vague or incomplete statements are more likely to result in denial
• The FTB may request additional information or documentation after receiving your request
• Filing the FTB 626 does not automatically stop collection activity on the penalty
• Submitting false information on this form may result in additional penalties

How to Fill Out the California FTB 626 Online

FormsPal provides a free online PDF editor that lets you complete the California Form FTB 626 directly in your browser. Open the form using the button at the top of this page, enter your information in each field, review all entries for accuracy, then download and print the completed form for submission to the Franchise Tax Board.

Related California FTB Tax Forms

You may also need these California Franchise Tax Board forms when managing your tax obligations:

• FTB Form 3519 - Payment for Automatic Extension for Individuals
• FTB Form 3539 - Payment for Automatic Extension for Corporations and Exempt Organizations
• FTB Form 3540 - Credit Carryover and Recapture Summary
• FTB Form 5870A - Tax on Accumulation Distribution of Trusts
• FTB Form 4905 - Installment Agreement Request